vendredi 27 mars 2015
Fitch Downgrades Greece's IDRs to 'CCC'
Posted on 15:52 by nice news
Fitch Ratings has downgraded Greece's Long-term foreign- and local currency Issuer Default Ratings (IDRs) to 'CCC' from 'B'. The issue ratings on Greece's senior unsecured foreign and local currency bonds are also downgraded to 'CCC' from 'B'. The Short-term foreign currency IDR has been downgraded to 'C' from 'B. The Country Ceiling has been revised to 'B-' from 'BB'.
Under EU credit rating agency (CRA) regulation, the publication of sovereign reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from this in order to comply with their legal obligations. Fitch interprets this provision as allowing us to publish a rating review in situations where there is a material change in the creditworthiness of the issuer that we believe makes it inappropriate for us to wait until the next scheduled review date to update the rating or Outlook/Watch status. The next scheduled review date for Fitch's sovereign rating on Greece is 15 May 2015, but Fitch believes that developments in Greece warrant such a deviation from the calendar and our rationale for this is laid out below.
KEY RATING DRIVERS
The downgrade reflects the following key rating drivers and their relative weights:-
High
Lack of market access, uncertain prospects of timely disbursement from official institutions, and tight liquidity conditions in the domestic banking sector have put extreme pressure on Greek government funding. We expect that the government will survive the current liquidity squeeze without running arrears on debt obligations, but the heightened risks have led us to downgrade the ratings.
The damage to investor, consumer, and depositor confidence has almost certainly derailed Greece's incipient economic recovery. The damage will take time to repair even if prospects for a successful programme completion improve over the coming days or weeks. We have
Under EU credit rating agency (CRA) regulation, the publication of sovereign reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from this in order to comply with their legal obligations. Fitch interprets this provision as allowing us to publish a rating review in situations where there is a material change in the creditworthiness of the issuer that we believe makes it inappropriate for us to wait until the next scheduled review date to update the rating or Outlook/Watch status. The next scheduled review date for Fitch's sovereign rating on Greece is 15 May 2015, but Fitch believes that developments in Greece warrant such a deviation from the calendar and our rationale for this is laid out below.
KEY RATING DRIVERS
The downgrade reflects the following key rating drivers and their relative weights:-
High
Lack of market access, uncertain prospects of timely disbursement from official institutions, and tight liquidity conditions in the domestic banking sector have put extreme pressure on Greek government funding. We expect that the government will survive the current liquidity squeeze without running arrears on debt obligations, but the heightened risks have led us to downgrade the ratings.
The damage to investor, consumer, and depositor confidence has almost certainly derailed Greece's incipient economic recovery. The damage will take time to repair even if prospects for a successful programme completion improve over the coming days or weeks. We have
Fitch Downgrades Greece's IDRs to 'CCC'
Categories: Fitch Downgrades Greeces IDRs to CCC
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